Asian markets sold off sharply on Friday after concerns emerged that soaring semiconductor prices could begin squeezing profit margins across the technology sector.
Investor sentiment weakened after Apple shares fell 6.1% overnight, wiping around $263 billion from the company’s market value. The iPhone maker announced price increases for its iPads and MacBooks as it moves to offset sharply higher costs for memory and storage chips, highlighting the inflationary impact of surging AI-related semiconductor demand.
Microsoft also announced price increases of up to $150 for its Xbox gaming consoles, adding to concerns that higher component costs are beginning to filter through to consumers.
The weakness spread across Asian markets, with South Korea’s Kospi tumbling 6.9%, triggering a 20-minute circuit breaker after heavy selling. Japan’s Nikkei 225 dropped 4.5%, putting the index on course for a weekly decline of around 3%.
Elsewhere, China’s blue-chip CSI 300 fell 1.9%, while Hong Kong’s Hang Seng lost 1.6%.
The sell-off came despite another strong performance from memory chip maker Micron Technology, whose shares surged almost 16% to a record high after reporting blockbuster earnings and upbeat guidance driven by continued demand for AI hardware.
Meanwhile, oil prices continued to retreat, with Brent crude falling 1.3% to around $74 a barrel after Saudi Aramco resumed crude loading at its Ras Tanura export terminal following a disruption of almost four months, easing concerns over global supply.
